Honda reduces earnings projection due to tariff uncertainties

Japan’s Honda Motor forecast a 59% decline in profits in the current financial year and said it would suspend a plan to build an electric vehicle supply chain in Canada amid uncertainty stemming from U.S.

President Donald Trump’s tariffs. Japan’s second-largest automaker expects its operating income to total 500 billion yen ($3.38 billion) in the year ending March 31, 2026, up from 1.21 trillion yen in the fiscal year just ended (March 31).

Honda’s prediction is the most recent indication of the challenges automakers are facing as a result of Trump’s tariffs on imported vehicles, while the sector is also being impacted by the growth of Chinese EV manufacturers.

Additionally, Honda declared that it will halt its April 2024 plan to establish an electric vehicle supply chain in Ontario, Canada, for almost two years. It stated that the current decline in demand for electric vehicles was the reason behind this decision.